Chapter 1 - Development

Definition of development
Development is most commonly equated with economic growth.
Economic growth refers to the change in a country’s wealth over time and such changes
are usually measured in percentages.
It has been widely seen as a good indicator of the health of a country’s economy and
whether development is taking place.
However, many have argued that there are many goals to development and economic
growth is just one of them.
Other non-economic goals include improving the standard of living and the non-material
quality of life.
Standard of living refers to the goods and services available to people in the environment
they live in.
Quality of life refers to the well-being of the people.
Characteristics of development
Different viewpoints
Different people have different ideas of what development means.
An economist is likely to define development purely in terms of economic growth or the
accumulation of materials wealth.
A sociologist may equate development with social progress in a society, such as the
increasing literacy rate of the population.
A political scientist, on the other hand, may look at development as a process in political
change, such as when more and more people are able and willing to vote.
For a geographer, the focus may be on how development as a process has spread from
one region to another and how it has both positively and negatively affected the physical
environment in particular.
Continuous process
Development is a continuous process.
No country can say that it has achieved the highest level of development possible.
There is always room for improvement.
As there are different levels of development, a country has to plan a series of short-term
and long-term goals to reach its targeted level.
The success or failure to reach these goals within the time frame decided upon will help
the country determine whether it is progressing towards being more developed.
Dependence on several factors
In reality, the rate at which countries undergo development differs.
Some countries are able to develop faster than others.
It is possible for a country to either move forward or slip backward after reaching a
particular level of development.
Success or failure is never simply dependent on just one or two factors.
A slip may be due to a combination of factors, such as political instability or a major
environmental disaster.
Success in achieving development depends on a number of factors, such as the presence
of resources and the effective implementation of development goals by governments.
Wide range of measurement
Development is measured according to many different standards within a society.
One of thee standards is economic development.
Purchasing power refers to the amount of goods and services a given amount of money
can buy.
Standards of development can also be social or political depending on the angle of
assessment.
Positive and negative impacts
The result of development can be positive or negative, or a combination of both.
Positive changes such as a clean water supply and an efficient transportation system
would benefit the majority of the population.
However, there could be a negative impact, such as an increase in air pollution because of
more people being able to afford cars, or forests and farmlands being cleared for the
development of golf courses.
These results of development benefit only a minority of the population and sometimes may
even cause more harm than good in the long term.
Sensitive issue
Deciding which countries are developed and which countries are not requires comparisons
to be made.
It involves labeling countries according to their levels of development.
This is a particularly sensitive issue, as no country would appreciate being regarded as
“underdeveloped” and “backward”.
Choices and dilemmas
There are many goals to development.
These goals may include increasing economic growth, improving standard of living and
enhancing quality of life.
However, the government of a country has limited funds, and given so many goals,
choices will have to be made.
Governments are put in dilemmas about which developmental goals should be prioritized
for the welfare of the country.
Classification of countries
Over the years, several attempts have been made to classify countries according to the
levels of development.
Given the definitional difficulties associated with the term development, it is not surprising
that these classifications have raised huge disagreements, with many criticizing them as
being vague and discriminatory.
Moreover, it caused much unhappiness among countries which were labeled as “Third
World”.
These countries felt that the term was negative and biased, since it suggested that they
occupied third place in the hierarchy of the three worlds.
Due to such problems, a new system of classification was devised, grouping the countries
into “developed” and “developing”.
Hence, all countries previously from the First World and were listed as “developed” while
those from the Second and Third World were grouped together as “developing countries”.
Based on a largely economic criterion, these categories were better received by poorer
countries as “developing” implied a positive process of continuous improvement.
However, this classification is not without difficulties as well.
The application of the term “developing country” to some of the worldʼs less developed
countries could be considered inappropriate - a number of poor countries are not
improving their economic situation, but have instead experienced prolonged periods of
economic decline.
After many revisions, the most common classification presently is to group countries into
“Developed Countries” (DCs) or “Less Developed Countries” (LDCs).
Countries at the early stages of development with lower standards of living and a lower
quality of life are considered less developed.
To prevent the classification from being too general, DCs and LDCs can be further divided
into, firstly, the old industrialized countries are countries which initiated their
industrialization program in the early 1900s, such that their current economies are in
advanced stages of development.
Secondly, the newly industrialized economies (NIEs) are nations with economies more
advanced and developed than those in the LDCs, but have yet to show the full signs of a
developed country.
To many, this is seen as a mid-category between DCs and LDCs.
Thirdly, emerging economies refer to those countries with economies that exhibit
consistent and fairly strong development over a longer period of time.
Some writers have also referred to emerging economies as those countries which have
embarked on economic development and reform programs, and have begun to open up
their markets to “emerge” onto the global scene.
Fourthly, least developed countries are countries that exhibit the lowest indicators of socioeconomic
development.
They generally suffer from extreme poverty, ongoing and widespread conflict and lack of
political and social stability.
Fifthly, the oil rich countries are those countries which have accumulated considerable
wealth based on selling their oil reserves but have yet to fully develop other parts of their
economies.
Sixthly, the centrally-planned economies are countries which do not subscribe to the
capitalist system.
Classification, according to the extent of development, is not only restricted at the country
level - similar attempts have been extended to the regional scale.
Many have observed that most DCs tend to lie in certain regions, and the same could be
said about LDCs.
Hence, it is possible to categorize regions as developed or less developed.
Such classifications of development at the regional level are increasingly necessary as the
interdependence of countries in this era of globalization has led to the importance of
regional cooperation in the process of development.
Hence, it is not difficult to see the establishment of regional associations, such as the
European Union (EU), that seeks to work towards a higher level of development for its
member nations.
Indicators of development
We can rely on certain indicators or signs which can generally be categorized into three
broad groups - economic, social and other indicators.
Economic indicators
Income per capita
The most common economic measure of development is Gross National Product (GNP).
It refers to the total value of goods and services produced by the citizens of a country in a
given year.
It includes both the contributions made by the citizens working and investing in the country
and the income received by the citizens of that country who are working and investing
overseas.
However, it excludes the earnings by non-citizens who worked or invested in the country
as this often does not stay in the country and thus does not contribute to its development.
As the contribution of GNP is affected by the size of a population, a country with a higher
population is likely to have a larger GNP compared to a country with a lower population.
To ensure accuracy, GNP per capita rather than GNP per se is a better measurement of
development.
GNP per capita refers to the average amount of income earned by each citizen in the
country in a given year.
Currently, GNP per capita is used by the United Nations to classify all the countries in the
world into, firstly, high-income economies.
Secondly, middle-income economies.
Thirdly, low-income economies.
Generally, a DC would have a higher GNP per capita than a LDC.
This is because a DC usually has a higher proportion of secondary and tertiary industries
that bring in a higher amount of income compared to a LDC that has a larger primary
industry.
Primary goods such as timber, iron ore and rice are likely to generate less profit compared
to manufactured goods and services.
However, GNP per capita does not give a true picture of the level of development in a
country for a number of reasons, firstly, it is an average figure and therefore does not show
individual and regional differences.
In some companies, there are people who are extremely rich and others who are
extremely poor.
Secondly, it does not take into account the local cost of living.
Thirdly, it does not reflect the informal economic activities that are not registered with the
government.
Fourthly, it does not take into account the social and environmental costs brought about by
economic growth.
Employment structure
The industries in a country can be divided into three main types - primary, secondary and
tertiary.
Primary industries refer to industries that extract natural resources directly from the Earth.
Secondary industries refer to industries that use the natural resources extracted by the
primary industries as raw materials and convert them into useful products.
Tertiary industries refer to industries that provide services.
As a country becomes more developed economically, the proportion of its workforce
employed in primary industries will decrease while the proportion of workforce in the
secondary and tertiary industries will increase.
Eventually, when the country reaches the developed status, the proportion of the
workforce in the tertiary industries will dominate, followed by the secondary industries,
while the primary industries will employ the smallest proportion of the workforce.
Demographic indicators
Demography is the study of the size, structure, growth, distribution and movement of a
population.
These population characteristics are often taken as a reflection of a country’s level of
development.
The population structure of a LDC is usually different from that of a DC.
This can usually be seen through the countries population pyramids.
The population pyramid of a LDC usually has a wide base which indicates a large number
of children, and the steady upwards narrowing shows that more people die at a relative
young age.
Such a pattern Amy be the result of a number of factors, such as the lack of access of birth
control methods and unfavorable environmental factors.
On the other hand, the population pyramid of a DC will tend to have a narrow base with a
significant broadening in its upper portion.
This signifies that the DCs, in contrast with the LDCs, tend to have lower birth and death
rates, resulting in aging populations.
Life expectancy
Life expectancy refers to the average number of years that a person can expect to live in a
particular country.
The life expectancy of people living in the DCs is often much longer than those living in the
LDCs.
High fertility rates and life expectancy imply that health care and its accessibility are better
in the DCs than the LDCs.
Infant mortality rate
The infant mortality rate refers to the number of deaths of children under the age of one
per 1000 live births in a year.
In the DCs, the availability of good sanitation facilities and healthcare systems, and the
easy accessibility of hospitals and doctors have contributed to lower infant mortality rates
compared to those of the LDCs.
In some LDCs, the occurrence of war and drought may create a shortage of food, resulting
in more babies dying from famine or malnutrition.
Poorly nourished people are more vulnerable to life-threatening diseases.
Urban population
The percentage of people living in an urban area is another demographic indicator.
This figure is usually higher in a DC than a LDC.
DCs have the financial resources to develop cities with modern infrastructure such as
skyscrapers, and facilities such as hospitals, schools and water pipelines.
A large proportion of the population may also be living in urban areas because they work
in the secondary and tertiary industries that are mostly located there.
LDCs, on the other hand, usually have a lower percentage of people living in urban areas.
A large proportion of the population live in rural areas where primary activities such as
agriculture are practiced.
However, the percentage of urban population may not be an accurate indicator of
development.
In recent years, there is an emerging counter-urbanization trend in some DCs.
People who used to live in the cities are relocating to the more rural environment of sun
belt states.
This is partly because of the increasing congestion and levels of pollution in the cities and
also the increase in private car ownership among the population.
In the LDCs, expectations of better employment opportunities and a higher standard of
living have also contributed to rapid growth in urban population.
Insufficient housing facilities in cities often result in the development of slums and squatter
settlements.
Slums are authorized housing areas that have deteriorated over time and are poorly
maintained.
They often no longer have access to water and electricity supplies.
Squatter settlements refer to areas where people have illegally built makeshift housing
from discarded cardboards and planks.
These settlements have no proper electricity or water supplies, and they are often next to
open sewers and piles of garbage.
Social indicators
Access to water and sanitation
Other indicators of economic development and the standard of living are accessibility to
safe drinking water and the availability of proper sanitation.
It is believed that the leading causes of death in many LDCs are contaminated drinking
water and poor sanitation.
The percentage of people who have access to safe drinking water and proper sanitation in
the LDCs is generally low.
Adult literacy rate
Adult literacy rate refers to the percentage of the population aged 15 and above who are
able to read, write and understand simple statements.
It is not unusual that the populations of the DCs have a higher literacy rate compared to
those in the LDCs.
This is because the governments in DCs have the financial resources to meet the
educational needs of the people.
They are able to build schools, train teachers and subsidize the cost of education.
Moreover, the people in the DCs, who earn a higher income, can afford to send their
children to schools to be educated.
Education, however, remains a luxury for many children in the LDCs, where schools are
not readily available, parents are poor and children are expected to help out on the farms.
In some countries, social customs that limit the access of females to education have also
contributed to the low literacy rates.
Unmeasurable aspects of development
The economic and social development can be measured in terms of numbers and figures.
However, there are other aspects of development that cannot be measured and
calculated.
These are the qualities that help define the quality of life.
They include a sense of security, fulfillment in life and freedom.
Human Development Index
Economic and social indicators alone are not enough to help us assess the development
of a country adequately.
In order to help to do this, the United Nations Development Program (UNDP) created the
Human Development Index (HDI) in 1990.
The HDI combines three important development indicators - an economic indicator (GDP
per capita), a social indicator (adult literacy rate) and a demographic indicator (life
expectancy).
GDP refers to the total value of goods and services produced by citizens and non-citizens
in the country.
The average scores of individual countries for each of the three indicators are calculated
and compared.
The HDI ranges from zero to one and is divided into three categories - high, medium and
low levels of human development.
The HDI provides a comprehensive method of measuring development because it takes
into account economic wealth (measured by GDP per capita) as well as the quality of life
(measured by educational achievements and health data).
Generally, a higher GDP per capita would contribute to a higher HDI value.
However, this is not always the case.
A country may be rich in terms of GDP per capita but the accumulated wealth does not
necessarily improve the quality of life of all the people living in the country.
On the other hand, some countries may not be as wealth as others but their level of
human development may be higher.
The Core-Periphery Model
The model proposed by American planner, John Friedman in the 1960s attempts to
explain the differences in development at a variety of scales.
According to the core-periphery model, the countries of the world can be divided into two
main groups - the core and the periphery.
The core generally refers to the richer and developed countries or regions, while the
periphery refers to the poorer and less developed countries or regions.
Unequal development between countries
The theory proposes that development of a country was initially premised upon natural
advantages.
These include the presence of natural resources, a good natural harbor and plentiful
supply of cheap labor.
These advantages attract some form of external force to come in and stimulate dynamic
change.
As the model was derived from historical case studies of various places, many believed
that the external force mentioned by Friedman referred to colonialism.
Foreign intervention results in certain acquired benefits for the country, including better
technical skills and increased monetary investments.
These benefits allow for the development of a core country, where there is generally better
infrastructure, skilled labor and a higher income as compared to other places.
Given the core countries improved, superior conditions, factors of production such as
labor, and natural resources, will be displaced from periphery countries to the core.
The core countries are able to take control of these factors of production through various
means, such as war and unequal trading rules, given their military and economic
advantages.
As a result, the core countries developed further to attain a higher standard of living.
The periphery continues to depend on the core countries for trade and development.
Their economic growth is slowed down or stagnated by continued exploitation through
unequal trading relations.
Unequal development within countries
The core-periphery development process can also be used to explain uneven
development at the sub-national scale, where certain regions within countries perform
better than others.
However, it must be noted that this process is more obvious in the LDCs than in the DCs.
This can be seen most clearly from the great differences in the living standards between
the high growth urban areas and the declining rural areas in the LDCs.
As with the unequal development between countries, the principal idea behind the core periphery
framework is that there is a transfer of factors of production from the periphery to
the core.
Will core-periphery relations and unequal development persist?
According to Friedman, as a country develops, the core may expand and stimulate
development in the periphery.
The effects of development may spread from the core to benefit the periphery.
This is known as the spread effect.
Thus, inequalities between the core and periphery may gradually be reduced or even
bridged.
However, Friedman observed that while in theory, the unequal relations between the core
and periphery may disappear, in reality, many of these inequalities persist.
This led him to conclude that if there is no intervention by the state to implement certain
policies, the core will continue to get richer and more developed, while the periphery will
get poorer.
Whilst Friedman focused on the spread effect to attain equality, other writers who used
the core-periphery concept were not so optimistic.
In particular, the dependency theorists most active in Latin America in the late 1960s,
argue that the backwash effect rather than the spread effect would occur.
The backwash effect refers to the negative impact effected by the growth of the core on
the periphery, which tends to be poorer.
The backwash effect will outweigh benefits produced by the spread effects, causing the
periphery to suffer the negative impact of the growth of the core.
The backwash effect is the spatial concentrations of wealth in the core, at the expense of
the periphery.
Examples of such an effect include draining of investment, labor and raw materials from
the periphery.
Hence, as the dependency theorist put it, the periphery will always suffer as they are
heavily dependent on the core.
The only way out of this is for the periphery to cut all links to the core and withdraw from
the whole capitalist system of exchange altogether.
Basing a country on a non-capitalist system is thus seen as the solution.
Limitations of model
Like all theories and models, the core-periphery model is not perfect.
One of its most obvious limitations is its failure to explain the rapid growth rates of some
East Asian and Southeast Asian economies, such as Hong Kong and Singapore, which
were once colonies of core countries.
Factors affecting development
Social and cultural factors
Social and cultural factors refer to factors that affect the level of education of the
population, fertility rate and birth control, work ethics, as well as the provision and
accessibility of healthcare services and medical facilities.
Social norms and cultural beliefs strongly affect peoples attitudes towards birth rate and
family size.
In the LDCs, low levels of education and traditional beliefs are often responsible for the
high birth rates and large family sizes.
A large population and a high birth rate tend to hinder development because resources
have to be spent on providing health and medical care, food and education for the youthful
population.
As a result, fewer resources are channeled to develop and improve the quality of life of
the general population.
In general, children living in the LDCs have fewer opportunities for education as their
parents cannot afford to send them to school.
Furthermore, the number of schools may be limited and there may be a lack of properly
trained teachers and facilities in the rural areas.
A low literacy rate has negative impact on the economic development of a country.
People with little or no formal education may have difficulties learning new skills and
embracing modern technology.
They may be reluctant to change because they feel safer to do things in the traditional
way.
This leads to a shortage of skilled labor and therefore hinders and slows down the
development of secondary and tertiary industries in the country.
Environmental factors
Natural disasters can strike any country, regardless of its level of development.
Both the DCs and LDCs have experienced hurricanes, droughts, earthquakes and other
natural disasters.
However, responses to a disaster differ greatly.
When a natural disaster hits a DC, the country has the resources and manpower to deal
with it and help those whose livelihoods have been affected to recover quickly.
Agriculture, a vital source of food and income for the majority of people in the LDCs, is
often ruined by natural disasters.
When compared with the DCs, the damage done to the economies of the LDCs, is often
much greater, as funds which are already limited would have to be diverted to repair the
damage, thus slowing the development process.
Man-made environmental problems can also further hinder development.
For example, overgrazing, deforestation and poor land management can lead to severe
soil erosion, loss of soil fertility and desertification.
The loss of arable land for cultivation may require the construction of expensive irrigation
systems and costly chemical fertilizers to restore its ability to support crops and natural
vegetation.
Historical factors
Many LDCs were once under colonial rule.
While colonial governments did help to develop their colonies by building basic
infrastructure, helping their colonies develop was not the main purpose of colonization.
The colonial powers wanted to obtain natural resources that could be used for their own
industrialization and development.
The outflow of resources from their colonies resulted in these colonies being unable to fully
develop their own economies.
As a result, the colonies became dependent on their colonial governments both
economically and politically.
Economic factors
Many LDCs are rich in natural resources such as oil, iron ore and coal.
However, this natural advantage has not been exploited to benefit the countries.
This is because the mining industries, among others, tend to be controlled by only a few
large companies.
While these companies reap the profits, little of the wealth is redistributed to the rest of the
population.
The country consequently remains undeveloped with the poor infrastructure.
This situation in the LDCs is unlike what happened in many of the DCs in the 19th century.
The wealth from the mining industry was invested to develop the country and raise the
quality of life.
Another factor that causes uneven development between countries is the quality of
workforce.
In the LDCs, the workforce typically earns low wages.
With a large proportion of their income spent on basic necessities such as food, clothing
and housing, they are left with little or no savings.
With little or no money for investment, they are trapped in a vicious cycle of poverty,
unable to raise their standard of living.
In short, low income leads to low investment, which results in a low level of productivity
and continued low incomes.
Cumulative causation
There is, however, a way for LDCs to break out of this vicious cycle of poverty.
They can do so through the cumulative effect of movements of both people and resources
to increase wealth and spur greater economic developments in a region.
This is called cumulative causation.
With initial help from the government or external agencies like the World Bank or Asian
Development Bank, the LDCs can develop a core economy through the process of
cumulative causation which benefits and develops the periphery as well.
This will gradually lead to an overall improvement in the standard of living for the
population.
The process of development can take place in the following way, firstly, a new industry is
introduced or an existing industry is expanded.
Secondly, this creates new or more jobs for the local population.
With employment, the population becomes richer, thus increasing their purchasing power.
Thirdly, with more income and thus savings, the workforce is able to undertake training to
improve themselves.
Fourthly, as the quality of the workforce improves, they are able to get better paying jobs.
With increased income, demand for more goods and services also increases.
This leads to the setting up of retail and food outlets, and entertainment, education and
healthcare services.
Fifthly, as the place develops to provide better jobs and a higher standard of living, it
attracts people from other areas to migrate, live and work there, increasing the local
population as a result.
Sixthly, with a larger population, the government is able to collect more taxes.
Seventhly, with a larger budget, the government can further expand the public service.
A new phase of construction begins.
Eighthly, the place becomes a growth pole, that is, the catalyst of growth for a region or an
area, with a continued influx of migrants and businesses further stimulating economic
growth.
Ninthly, invention, innovation and the revamping of industries could lead to greater growth,
which includes the introduction of other industries or the expansion of existing industries.
Tenthly, linked or related industries are attracted to this place to set up businesses here.
Eleventhly, at the same time, links are still in place with firms supplying raw materials to
the industry.
Twelvethly, links are forged with other firms that make use of the products or process the
products forward.
Political factors
The goals of development consist of economic growth as well as how economic benefits
can be more evenly distributed to improve the quality of life of the population.
To achieve these goals, not only must the government be effectively organized,
accountable and transparent in policy-making and implementation, free from corruption
and actively promotes justice, there must also be good governance.
Good governance is more than good, efficient government.
It must involve grassroots and non-governmental organizations in public debates, in policymaking
with the aim of developing a strong civil society participating in public affairs.
One important characteristic which will lead to development is political stability.
Stable governments are more likely to attract foreign multinational companies (MNCs) to
invest in the country.
A fair and just government creates a stable and peaceful environment for businesses to
develop and carry out their operations.
An unstable government, marked by internal struggles for power, is constantly changing
and is likely to deter foreign investments in the country.
This is because investors may be worried that their investments would be threatened by
unfavorable industrial policies, following changes in political leadership.
Besides stability, another important characteristic is honesty.
An incorruptible government inspires confidence among both local and foreign investors.
This is because investors can be assured that they would not have to incur additional
costs of production in the form of bribes if they want to set up their businesses in the
country.
The policies adopted by governments are equally important.
For example, by investing in education, a country could ensure that its population is
equipped with skills that are attractive to investors.
Having a comprehensive industrial policy that provides incentives, such as infrastructure
and tax relief, also encourages investment.
Strategies for development
This section examines the different strategies adopted by the LDCs to bring about
development in their countries.
These strategies involve quantitative measures such as economic growth and qualitative
measures such as social well-being and literacy rate which are associated with quality of
life.
In general, the development strategies help improve the HDI of the LDCs.
The HDI is concerned with three major aspects of development - economic, demographic
and social.
Economic development strategies
In general, economic development may be measured by an increase in GNP and GNP per
capita.
To achieve a high GNP and GNP per capita, the LDCs need to develop both their
agricultural as well as industrial sectors so as to increase the quantity and improve the
quality of the goods produced.
Agricultural development
In order to develop the agricultural sector in the LDCs, the problem of low productivity
must first be addressed.
Agricultural production, especially in the African countries, has decreased due to falling
food prices over the years.
In addition, the development of industries in urban areas has caused an increase in ruralurban
migration.
Consequently, farms in the rural areas are faced with labor shortage.
Without sufficient labor to work the farms, the yields will drop and the economic
development of the country will be hampered.
One key economic strategy to remedy this situation is to develop the agricultural sector in
the LDCs so that farmers will stay in the rural areas to work on their farms.
Governments in the LDCs must help farmers improve their cultivation methods in order to
increase the productivity of their farms.
This will, in turn, lead to an increase in the income of the farmers and their quality of life.
Unfortunately, sometimes the outcome may not turn out as planned.
High productivity levels can also lead to the oversupply of products which in turn leads to
lower prices.
In such cases, higher productivity does not naturally mean more incomes for the farmers.
Some ways that have been used to help farmers in the LDCs increase their farm
production include the use of modern farming technology and scientific research to
develop new high-yield seedlings, improvements in irrigation and an increased use of
chemical fertilizers.
However, these means have their drawbacks.
However, it is expensive to grow these high-yielding crops because they need more water
and chemical fertilizers to grow well.
Irrigation must also be improved and large quantities of pesticides are required to protect
the new type of seedlings as they are more vulnerable to pests and diseases.
As a result, the Green Revolution benefited mainly the rich farmers who could afford the
high costs of production.
It did not bring about the large-scale economic development that was envisioned.
It can be concluded that any new development introduced in the agricultural sector must
be, firstly, economically affordable - this will ensure that the development benefits all the
farmers, and not just the rich minority.
Secondly, economically feasible - for example, while the complete mechanization of farms
may improve productivity and efficiency, it may also increase unemployment among the
farmers and force them to migrate to urban areas to seek employment.
However, if a balance between the use of mechanization and manual labor is maintained,
then productivity can still be increased without displacing the farmers.
Thirdly, technologically feasible - land conditions should be taken into account when
deciding on the type of technology to be adopted.
For example, machinery which is suitable for farms in low-lying areas may not be suitable
for farms located in places with high relief.
Fourthly, socially acceptable - many farmers in the LDCs do not own any land.
Those who do own land usually have very small-sized farms, which imply low production.
To overcome this problem, some governments in the LDCs acquire the fragmented
farmland and redistribute the land to the farmers.
This may not be the best solution because farmers may resent the idea of the government
taking away their land.
After all, many of their farms have been passed down through many generations.
A more socially and culturally acceptable way is to help farmers organize themselves into
groups to form cooperatives.
A few farmers may cooperate by pooling their resources together and combining individual
plots of farmland.
In this way, the size of the farm will be big enough for the farmers to cultivate in a more
economical and efficient way.
They can also combine their financial resources to buy better seedlings and fertilizers, to
improve irrigation methods, and to employ labor to work on their farms.
Industrial development
In the process of development, the LDCs often seek to change their predominantly
agricultural-based economies to industrialized economies.
Industrialization provides more employment opportunities and higher, more stable income
for the workers.
The manufacturing industry also adds value to the raw materials when the industries
process them into finished products.
The sale of these finished products will help the country earn more foreign currency, which
is crucial to its economic development.
Some LDCs may process raw materials but are unable to process these raw materials into
final products.
They can only sell their raw materials to the DCs that have the financial resources,
technology and skilled manpower to manufacture finished products from raw materials.
The DCs will then sell these finished products to the LDCs at higher prices.
It would be more economical for the LDCs to produce the finished products themselves,
which explains why many LDCs are looking towards industrialization.
However, they face many difficulties, such as a lack of skilled labor, raw materials and
markets, as well as strong competition from the DCs which are already industrialized.
To overcome these difficulties, the LDCs must focus on several factors, firstly, providing or
improving the basic infrastructure essential for industrial development.
These include reliable water and power supplies, efficient transport and communications
networks, and good port facilities.
Secondly, building up a well-trained and skilled labor force.
Thirdly, ensuring easy access to raw materials.
Fourthly, providing strong support from the government.
Fifthly, securing strong backing from banking and financial institutions.
Sixthly, implementing sound economic policies for the expansion of the consumer markets.
Demographic development strategies
Demographic development strategies focus on overcoming problems caused by rapid
population growth, such as low levels of healthcare services and low literacy rates.
Population growth
In many LDCs, the rate of population increase is much higher than those of the DCs.
Rapid population increase strains a country’s resources.
It also reduces the government’s ability and effectiveness to provide for its people,
especially in the areas of education and health care.
Improvements in quality in life, living conditions and income levels, which are required for
development will also be greatly hampered.
Therefore, the LDCs must control their high rates of population growth.
To bring about a decrease in population growth, there must be changes in the following
areas, firstly, family planning by educating couples on the benefits of having fewer
children.
Contraception methods must be taught to the people.
Such education is important to the success of family planning, especially in overcoming
entrenched cultural and religious beliefs.
In addition, family planning services must be made readily accessible to the people.
Secondly, due to the lack of healthcare facilities in many LDCs, the infant mortality rates
are high.
Families in the LDCs tend to have more children so that some will survive to adulthood.
Thus, healthcare services must be improved to reduce the infant mortality rates and
thereby also reduce the high birth rates.
Thirdly, women in the LDCs must be given greater access to education.
This will raise the social status of women, give them greater freedom to decide when to get
married, and to choose between using birth control and having more children.
Social development strategies
Social development has an impact on the quality of life of people in a country.
Two major aspects of social development are health care and education.
Healthcare services
The health status of a population is important in the developmental process.
A healthy population is more able to contribute to development efforts and will also be
better placed to benefit from the fruits of these efforts.
As discussed earlier, many LDCs have high rates of infant mortality and their life
expectancy levels are well below those of DCs.
Indicators such as these are often a good reflection of the health status of a population
and the quality of health care.
In many LDCs, health facilities such as hospitals are inaccessible to a large proportion of
the population, especially those living in remoter rural areas.
Where hospitals and clinics do exist, there are frequent shortage of trained nurses/doctors,
drugs and basic equipment.
Providing good health care for everyone is an expensive mission for the governments of
the LDCs.
Many LDCs still cling to a top-down style of health care, which means the considerable
proportion of health expenditure is being allocated to a few key hospitals, particularly in the
main towns and capital city, whereas the rural areas are neglected.
Given that health care is so important to development, more attention needs to be given to
this aspect.
Some strategies to improve health care in the LDCs include, firstly, medical and health
services should be made accessible to the whole population.
Direct financial given to the rural areas so that hospitals, medicine and medical equipment
will be made available to more people.
Secondly, increase the number of nurses and doctors and make sure that different areas
of the country can gain access to these medical personnel.
Qualified doctors can be sent down to the rural areas to train local medical staff in basic
first aid, common vaccines and medications, and symptoms of common ailments.
Thirdly, improve sanitation facilities to prevent the outbreak of diseases.
Clean water should also be made available to the population living in different areas.
While such strategies are very difficult to carry out due to many LDCsʼ lack of economic
resources, it must be remembered that development is about choices and dilemmas.
Health care should be placed as one of the top priority of LDCs, since development can
only take place with the presence of a healthy population.
Education
Another key element in the development process has to be education.
It is only with an educated population that a country possessing the necessary human
resources can develop.
Like health care, education is an expensive service to provide.
The quality and availability of education varies considerably within and between countries.
Many education systems in the LDCs are often inappropriate for the present-day needs of
individuals, communities and nations.
Indeed there has been much debate on what is the most appropriate form and structure of
educational provision in the LDCs.
Most commentators would probably agree that providing everyone with basic primary
education, especially literacy, should be the first priority of all countries.
However, for many of the LDCs, primary school enrollment and adult literacy rates are well
below those of the DCs.
In addition, in many LDCs, the number of boys who attend school far surpasses the
number of girls.
Given the importance of education to development, certain strategies have been agreed
upon by international organizations, such as UNESCO, to enhance primary education and
increase literacy rates in the LDCs, firstly, teach useful skills.
Courses should be relevant and linked to a communityʼs life.
Secondly, be more flexible.
Use child-centered approaches; adjust school timetables to the daily routine and seasonal
farming calendar.
Thirdly, get more girls to go to schools.
Be sensitive to the social, economic and cultural barriers to ensure equal participation.\
Fourthly, raise the quality and status of teachers.
Improve pay and teaching conditions; retrain teachers with negative and stereotypical
ideas.
Fifthly, cut the family’s school bill.
School fees and equipment charges deter participation; basic education must be free of
such costs for poor families.
The Role of International Cooperation
Besides having an effective national strategy, cooperation between countries is equally
important in bridging the development gap between the DCs and LDCs.
Many international organizations have assumed an important role in helping the LDCs in
their development.
LDCs need financial aid, skilled professionals and relevant technology, especially after
they gain political independence.
In promoting development, these international organizations do not focus on just economic
development but also emphasize social and human development.
The projects they carry out can be long term (more than five years) or short term (less or
equal than five years).
Asian Development Bank
The Asian Development Bank (ADB) has been active in conducting research and providing
funds for countries in the Asia-Pacific region.
ADB focuses on eradicating poverty, improving the status of women and managing the
environment.
It provides loans, guarantees and the technical assistance manly to governments for
specific projects and programs.
World Bank
The World Bank is another financial institution that provides financial and technical
assistance to the LDCs.
It plays a supportive role in its mission eradicate global poverty and improve standards of
living.
It provides loans to the LDCs for projects on improving education and health care.
Limitations to foreign aid
According to the UN Report on Millennium Goals 2005, international development aid has
reached an all-time high.
Most aid goes to relief and emergency assistance, as well as repayment of debts.
It does not provide funds for social services or poverty reduction.
Over the years, there has been growing skepticism about the role of international financial
aid and assistance as a solution to poverty and low levels of human development in the
LDCs.
This is because many of these countries have been receiving aid for many years but their
levels of economic and human development are still low or even lower than before.
In particular, many African nations which have received large amounts of aid from the
United States of America and the international community continue to have per capita
incomes below US$500.
There are a number of reasons to explain why aid has often been ineffective.
First, a significant amount of the aid was given to the LDCs in the form of loans, which they
have to repay over a number of years with interest.
When these debts accumulate, the LDCs usually spend more of their earnings repaying
the interest.
Moreover, the aid may not reach the people who really need it.
Most aid could end up in the hands of corrupt government officials or be invested in
military equipment because of ongoing civil war.
Often, aid enables the rich to get richer while the poor remain poor.
International agreements
Between 1990 and 2002, the average total income of the world increased by 21%,
average life expectancy was raised from 63 to about 65 years and the number of people
living in extreme poverty has declined by 130 million.
Nevertheless, differences in improvement still exist across countries, especially among
Sub-Saharan African countries.
International organizations, the DCs and the LDCs have come to agree that more concrete
and equitable plans have to be put in place in order to resolve the problem of unequal
development of the world and improve living conditions across the Earth.
UN Millennium Project
One such plan is the United Nations (UN) Millennium Project.
This project consists of eight development goals that all 191 UN member states have
signed in agreement in 2000 to try achieve by the year 2015.
The eight goals are, firstly, to eradicate extreme poverty and hunger.
Secondly, to achieve universal primary education for all children, male and female.
Thirdly, to promote the gender equality and empower women.
Fourthly, to reduce child mortality rates to below five per 1000 live births.
Fifthly, to improve maternal health.
Sixthly, to combat HIV/AIDS, malaria and other diseases.
Seventhly, to ensure environmental sustainability.
Eighthly, to develop a global partnership for development.
Several observations have been recorded in the UN Millennium Goal Report 2005 since
the implementation of these goals.
Firstly, progress in development has been made.
For example, firstly, the number of people living on less than US$1 a day has dropped by
nearly a quarter of a billion.
In more than 30 countries, hunger was reduced by at least 25%.
Secondly, all the LDCs have improved in the goal to provide universal primary school
education, but notably in countries in Latin America and the Caribbean, Southeast Asia,
East Asia, and Northern Africa, have achieved more than 90% of children enrolled in
primary school.
Thirdly, concerning access to safe drinking water, the situation has improve worldwide.
The proportion of population using safe drinking water in the developing countries has
increased from 71% in 1990 to 79% in 2002.
Fourthly, progress has been slow in improving sanitation in the developing countries.
Although sanitation coverage in the developing countries has risen from 34% in 1990 to
49% in 2002, the rate of progress is slow.
If improvement progresses at this rate, there will still be about 2.4 billion people worldwide
with no access to proper sanitation facilities by 2015.
A lot more needs to be done in this area if the UN is to achieve this goal by 2015.
Secondly, the rate of development is not the same for all the goals.
Some development goals take longer to achieve than others.
For example, progress in promoting gender equality and empowering women is very slow
in the LDCs, although some progress has been made.
Combating diseases such as AIDS and malaria has also not been very successful.
Thirdly, development is unequal in different developing regions.
The rate of development is fastest in Latin America and the Caribbean, East Asia,
Southeast Asia and Northern Africa but slowest in Sub-Saharan Africa and Oceania.
For example, China is leading in reducing poverty but in Sub-Saharan Africa, the poverty
rate is increasing; the poor are getting poorer, and half of the children under five years old
are malnourished.
Within a country, there is also uneven development.
For example, according to the World Bank, the income gap in China between the rural and
urban population is widening.
In cities like Beijing, Shanghai and Guangzhou along the coastal region of China, GDP per
capita is between US$608 and US$781.
However, in parts of central and interior China, GDP per capita drops to below US$300.
Indeed, in most LDCs, the uneven development between the rural and urban areas is the
main reason for rural-urban migration.
The goals are not only targeted at quantitative economic growth but also qualitative,
people-centered development.
The United Nations has stressed global partnership, with the LDCs taking up the primary
responsibility of developing their own countries while the DCs provide political and
financial support.
So far, these goals are on track as Kofi Annan, the former Secretary-General of the United
Nations, stated in his foreword in the Millennium Development Goals Report 2005ʼ.
He said the goals have unprecedented political support, embraced at the highest levels by
developed and developing countries, civil society and major development institutions
alike
UN Convention on the Law of the Sea
In addition, the UN Convention on the Law of the Sea has also played a part to even out
the development process of countries worldwide.
The convention not only allows coastal states to exercise sovereignty over their territorial
seas, it also allows countries to set up Exclusive Economic Zones (EEZ) where they have
a right to conduct marine research, harvest natural resources and carry out economic
activities within 200 nautical miles of their shores.
More importantly, it also assures land-locked countries of their right to access the sea
through the territories of neighboring coastal states.
Through these laws, the LDCs and land-locked countries are permitted to use ocean
resources and transportation routes for development purposes.
Trade agreements
Bilateral and multilateral trade agreements also contribute to the economic development of
countries within the agreements.
Some of the most successful multilateral trade agreements that exist at present are, firstly,
the European Union or EU which consists of 25 European countries.
Secondly, North American Free Trade Agreement or NAFTA which comprises Canada,
North America and Mexico.
Thirdly, Association of Southeast Asian Nations or ASEAN which includes all the Southeast
Asian countries.
Membership to these international organizations has a positive impact on the economic
development of member states.
The cooperation among member states brings about greater economic resources to
facilitate their development and also greater political power as they bargain with nonmember
states for more trade benefits.